Trade with Transparency, Traceability and Trust
Physical commodity trading remains a traditional, opaque industry. Operational and Commercial practices remain inefficient and antiquated. To negotiate, procure, contract and settle one physical commodity trade it is estimated involves multiple takes thousands of rounds of phone calls, emails and communication exchange. Every email creates delays, additional extra work and is an opportunity for mistakes to be made.
It is difficult to ascertain a counterparty’s track record and just as difficult to build a track record. Trades are constantly falling through because one element out of availability of product, freight and finance cannot be arranged in time.
DCX aims to revolutionise commodities trading. We are a financial technology commodity company that provides blockchain based digital marketplaces for commodity asset classes including Rice, Fertilisers to encourage efficiency and transparency in the physical market.
An efficient solution is offered to parties to the trade to access the same information in real time as generated and have a tamper-proof audit log. Trades concluded are automatically recorded by virtue of a smart contract incorporating all agreed terms. In addition the platform offers integration with post trade partners/service providers offering access to trade finance, freight, inspection and insurance.
Integration allows the users on the platform to obtain quotes and access service providers in a one stop shop — insurance, shipping, inspection and trade finance. Each of these elements can affect not just the profitability of the trade but also where the trade happens at all.
Integration, technology and ESG are paramount to sucess
It is estimated that it takes thousands of emails to settle a single physical commodity trade. Every email creates delays, extra work and is an opportunity for further mistakes.
Allowing all parties to the trade to see the same information in real time and having a tamper-proof audit log, which shows who has seen what, generates full transparency.
A key element of that audit log is verifying the identity of the source of the information. This can be achieved through full API integration or by giving the service provider their own dashboard on our platform.
Integration also allows the users on our platform to get quotes and procure from service providers in a single venue – insurance, shipping, inspection and trade finance. Each of these elements can affect not only the profitability of the trade but also whether the trade actually happens at all.
Finally, integration means that the execution of the trade can be coordinated automatically by a smart contract based on the terms of the trade that have been agreed. Documents are autofilled and matched. All parties are notified when actions are required.
DCX has established a structural relationship with Fujitsu, a leading Japanese information and communication technology (ICT) company. The relationship covers various technology areas and business advisory services. Fujitsu has supported DCX in creating the Rice Exchange and Fertilizer Exchange Platforms and is the chosen Managed DevOps provider.
Fujitsu delivers and manages production-ready, private, permissioned scale-out solutions running on Hyperledger Fabric, a Distributed Ledger especially developed for enterprise use with advanced automation features. It allows multiple non-trusting, globally distributed parties to digitally collaborate and trade as they require a single source of near real-time, tamper-proof, and readily accessible verifiable data.
The Fujitsu Blockchain Innovation Center (BIC) in Brussels is the integration partner of choice to create and operate the DCX solutions. Together with Fujitsu, DCX succeeds in going beyond just the technology and brings security, transparency, traceability, and finality to complex trades, supply chains, and ecosystems with multiple stakeholders.